Homeowners’ insurance is truly a necessity for any homeowner, which leads many homeowners to include it as part of their budget. But if you have paid off your mortgage or don’t have a mortgage at all, having a homeowners insurance policy can still be a critical part of your financial plan and could save you from paying the full cost out-of-pocket for a covered loss or damages. However, just because homeowners’ insurance is necessary doesn’t mean you should overpay for it.
Here are some ways to save on your homeowners insurance;
Bundle your insurance policies
You may have insurance from more than one provider. For example, your auto insurance may be with the same company you have been insured with since you were a young adult and your life insurance is with the insurer your employer uses. Bundling your insurance products by using one insurance company for all your needs could save you significant money, as most insurers will give you a multi-policy discount to reward your loyalty.
Ask your agent or insurance provider about what discounts are offered when you add on other policies, like auto and life insurance. Bundling at least two policies could result in significant savings.
Look for Discounts
Different insurance companies offer different discounts so you may need to do a little work here to find all the discounts you can use.
There are basic discounts available for keeping your home safe. These may include having an alarm system, extra smoke detectors, stronger bolt locks, and being a non-smoker. How you pay could save you money – some insurers offer discounts for simply setting up automated payments or paying your full six month premium upfront.
You may also be eligible for a discount if you don’t file a claim over a certain period of time. Generally, it’s a good idea to be cautious about filing claims. If you can comfortably pay out of pocket, consider doing that instead of filing a claim. It may seem silly to pay for insurance that you rarely use, but it’s probably better in the long run to file fewer claims.
Raise your deductible
A low deductible (the amount you pay out of pocket when filing an insurance claim) usually means a higher premium or monthly payment. Consider raising your deductible in order to reduce your monthly or yearly payment for your insurance. This can end up saving you thousands of dollars, especially if you don’t end up needing to file a claim for a while.
Many people live in their homes for 10-15 years or more before ever having to file their first claim. With a higher deductible, that can equate to thousands of dollars that can be better used for your retirement or investment accounts.
Keep in mind that f you’re going to raise your deductible, make sure to set aside enough money to cover that big deductible should disaster strike. You can use the savings from your reduced premium to fund your deductible.
Protect Your Home
When you protect your home from fire, theft and natural disasters, you reduce the risk of having to file a claim in the future.
Taking these steps to shield your home from costly claims can also earn you lower home insurance rates. For example, you may be able to save money on premiums and protect your home by using fire-resistant roofing materials or adding storm shutters.
You could also unlock discounts for adding home security features such as deadbolt locks, security or alarm systems, sprinkler systems, smoke detectors and fire alarms. Get quotes on these products and talk to an insurance agent to see how these features could save you money.
Improve Your Credit
In most states, insurance companies can check your credit before issuing a homeowners insurance policy. They may use your credit-based insurance score, which is a special credit score used by insurance companies to assess your risk of filing a claim. If you have poor credit, you can probably still get homeowners insurance, but it might cost more than if you had good credit.
Choose your claims carefully
Filing a homeowners insurance claim can potentially increase your premiums in the future. Although filing a claim is necessary for any large covered losses, it is generally not advisable to file a claim for every small loss, especially if the cost to repair is under or close to your deductible limit. In addition, many insurance companies offer a claims-free discount, which would likely not be applied to homeowners insurance policy if there is a history of small claims.
Compare Prices
There are dozens of companies that sell homeowners insurance, ranging from traditional insurance firms to online-only companies. Checking out all the options can earn you substantial savings. Start by talking to an insurance agent to determine what kind of coverage you need. Then get quotes from a variety of insurance providers, being sure to compare the same type of insurance and amount of coverage.
Moreover, be sure to check into the company’s financial stability and read online reviews and ratings to see how good the company’s customer service is. If disaster strikes your home, having a helpful, responsive insurance agent on your side can make all the difference in getting through a difficult time.
The key to understanding how to save on home insurance is to find the balance between having enough coverage in case of a disaster while keeping your premiums affordable. Talk to ONYX Insurance Brokers now and we will provide you the best insurance services you need. Contact or email us now!
